What is the purpose of issuing Secured Tower Revenue Securities?

Issuing Secured Tower Revenue Securities is a method of asset-backed securitization. It allows American Tower to raise capital by pooling specific assets (in this case, mortgages on communication sites) and issuing securities backed by the cash flows generated from those assets. This can provide an alternative to traditional debt financing.

What assets are securing these new securities?

The securities are secured by a loan made to two special-purpose subsidiaries of American Tower. This loan, in turn, is primarily secured by mortgages on the company's interests in 5,116 communication sites.

Is this a public offering of securities?

No, the filing states that the securities were priced in a private transaction. This means they were not offered to the general public but rather to a select group of investors.

How does this impact American Tower's financial position?

This transaction provides American Tower with additional capital. By securitizing a portion of its tower assets, the company can access funding, potentially diversify its funding sources, and manage its balance sheet. Specific impacts on leverage ratios and interest expense would be detailed in the full financial statements and press release.

AMT 8-K SEC Disclosure — Mar 28, 2018

Summary

American Tower Corporation (AMT) announced on March 27, 2018, the pricing of $526.4 million in Secured Tower Revenue Securities. This financing involves two tranches: $500.0 million for Series 2018-1, Subclass A, and $26.4 million for Series 2018-1, Subclass R. These securities are backed by a loan to two special-purpose subsidiaries, which in turn are secured by mortgages on approximately 5,116 of the company's communication sites. This issuance represents a form of asset-backed securitization, allowing AMT to raise capital by leveraging its tower portfolio. Investors should note that this transaction is structured as a private placement, and the specific terms and implications for AMT's overall financial structure and credit profile will be detailed in the full press release referenced in the filing.

Key Highlights

1AMT priced $526.4 million in Secured Tower Revenue Securities.
2The issuance consists of two subclasses: Series 2018-1, Subclass A ($500.0 million) and Series 2018-1, Subclass R ($26.4 million).
3The securities are backed by a loan to two special-purpose subsidiaries.
4The loan is secured primarily by mortgages on 5,116 communication sites.
5This transaction is a private placement, indicating a non-public offering.
6The financing aims to leverage AMT's tower assets for capital generation.

AMERICAN TOWER CORP /MA/ 8-K Report, Corporate Update (Mar 28, 2018)

Summary

Key Highlights

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